Editor's Note: Since its listing, Circle's stock price has been continuously soaring, with CRCL surging from its initial offering price of $29.30 to $300, becoming one of the biggest winners at the intersection of Wall Street and the crypto circle. However, in this equity feast of the stablecoin leader, the earliest executives and venture capitalists have become the "disappointed" ones who missed the main upward trend. Many of them chose to sell on the IPO day, missing out on potential billions in revenue within just two weeks. This not only reveals a severe misjudgment of market expectations but also reflects the cognitive disconnect between primary and secondary markets in the new era of crypto finance. When even the founders couldn't predict the true value of their own stock, perhaps we should rethink: In this era driven by narrative and emotional leverage, who are the truly smart money?
Original content follows:
Executives and venture capitalists who chose to sell stocks during Circle's (ticker: CRCL) IPO missed a stock price surge comparable to a rocket launch.
As of June 6, 2025, the potential revenue missed by these early sellers amounts to $1.9 billion. It would be more accurate to say they "lost by not buying" - their choice can be described as painful.
These executives and VCs cashed out at $29.30 per share, collectively receiving about $270 million. But if they had been willing to hold for a few more weeks, the value of their stocks would have reached billions.
Take Circle's Chief Product and Technology Officer as an example, who sold 300,000 Class A common shares at $29.30 per share during the IPO. If he had not sold these shares, their value would have reached $240.28 per share by last Friday's closing. This means he personally missed out on potential revenue of about $63 million.
Circle's Chief Financial Officer also sold 200,000 shares at the same price during the IPO, missing out on revenue of about $42 million.
Even the founder Jeremy Allaire was not spared. He sold 1.58 million shares at $29.30 per share during the IPO. Had he chosen to hold, he would now have an additional $333 million in book value.
Circle VCs Miss Billions in Potential Revenue
During Circle's Initial Public Offering (IPO), venture capital firms, executives, and other insiders collectively sold at least 9,226,727 common shares at $29.30 per share.
While these shares brought them a substantial cash-out of $270 million, the "opportunity cost" of this transaction became apparent just two weeks later.
Had they chosen to continue holding these shares, they could have earned an additional $1.9 billion.
Objectively, some VCs only reduced part of their holdings during the IPO. For example, the well-known venture capital firm General Catalyst only sold about 10% of its CRCL shares. According to its latest Form 4 filing with the U.S. Securities and Exchange Commission (SEC), the firm currently holds over 20 million shares.
Founder Jeremy Allaire's situation is similar, as he currently holds over 17 million shares and has options and restricted stocks. Many other venture capital firms and company executives have also retained a significant portion of their initial investment.
However, the decision to sell at $29.30 still appears awkward in the context of CRCL's current stock price of $240.28. While no one can predict the future, a forecast deviation of 88% is undoubtedly a "shocking misjudgment" that has already secured its place in financial history.
Click to learn about BlockBeats job openings
Welcome to join the official BlockBeats community:
Telegram Subscription Group: https://t.me/theblockbeats
Telegram Discussion Group: https://t.me/BlockBeats_App
Twitter Official Account: https://twitter.com/BlockBeatsAsia
